Oz Santos Completes Quadrant Buy
Australian oil and gas independent Santos said November 27 it has completed the US$2.15bn acquisition of a smaller Australian producer Quadrant Energy.
The effective date of the transaction is January 1, 2018. The company announced the proposed acquisition of 100% of Quadrant for US$2.15bn in August this year. Earlier this month, Australia’s competition watchdog had approved the deal.
“The acquisition of Quadrant is value accretive for Santos shareholders and is consistent with our strategy to build and grow our core assets around existing infrastructure and become Australia’s leading domestic natural gas supplier,” Santos CEO Kevin Gallagher said. “Santos has now increased its ownership and become the operator of a high quality portfolio of low cost, long-life conventional Western Australian natural gas assets with stable cash flows.”
“This acquisition strengthens our ability to fund our growth activities in WA, northern Australia and PNG, and the sustainable dividend through the cycle,” Gallagher added.
The acquisition will increase Santos’ 2P reserves by 220mn barrels of oil equivalent, up by about 26%, and annual production by 19mn boe, up by about 32%, Santos said in August, adding that the deal will provides combination synergies estimated at US$30-50mn/yr.
Quadrant holds natural gas and oil assets across more than 52,000 km2 of acreage, predominantly in the Carnarvon Basin offshore Western Australia, Australia’s largest offshore oil and natural gas province.